51.In an agency fund, the government is acting as an agent for another entity and therefore they do not have rights to these types of funds.
52.Internal investment pools, which account for investments of the reporting entity, are to be reported within the funds providing the resources, when preparing financial statements.
53.When a contributor and a government agree that the principle and/or income of trust assets is for the benefit of individuals, organizations, or other governments, a private-purpose trust has been formed.
54.When a contributor and a government agree that the principle and/or income of trust assets is for the benefit of individuals, organizations, or other governments, an agency trust fund has been formed.
55.When a contributor and a government agree that the principle and/or income of trust assets is for the benefit of individuals, organizations, or other governments, an investment trust has been formed.
56.Equity investments should be recorded at fair market value unless a government has sufficient investments in a company to apply the equity method.
57.GASB Statement No. 53 establishes reporting requirements for governments entering into derivative instruments.
58.GASB Statement No. 52 requires that endowments report investments at fair value unless the investments are in real estate
59.Derivatives include swaps, options, forward contracts and future contracts.
60.If a derivative is effective in reducing a government’s exposure to identifiable risks, the changes in the value of the derivative are reflected as investment gains or losses in the period that the value changes.
61.For governmental-type funds, Statement 53 (reporting of derivatives) applies only to reporting at the government-wide level, not the fund-basis statements.
62.Statement 53 (reporting of derivatives) does not apply to proprietary or fiduciary funds.
63.Statement 53 (reporting of derivatives) applies to government financial statements prepared using the modified accrual basis of accounting.